Adani crisis likely to leave India’s conglomerates unscathed

The dramatic fall in the Adani Group’s shares following allegations by Hindenburg Research is unlikely to spill over to other Indian conglomerates as they fare well on key business parameters, according to Bloomberg Economics.

Most major companies, including Reliance Industries Ltd and the Tata Group, scored higher than the ports-to-power conglomerate in a BE analysis of governance, liquidity and leverage conditions at India’s top 17 business houses.

“Adani is an outlier, not representative of India Inc as a whole,” economists Abhishek Gupta, Scott Johnson and Tom Orlik said in their report Tuesday. “India’s conglomerates do not yet rank among global majors like Apple and Tesla. But neither are they about to collapse in a heap of governance failures.”